Corporate News

Republic Cement set to exit PSE

Posted on April 19, 2016

REPUBLIC CEMENT & Building Materials, Inc. (RCBM) obtained the approval of the Philippine Stock Exchange (PSE) to exit the local bourse after a takeover by a company owned by Aboitiz Equity Ventures, Inc. (AEV) and Irish building materials company CRH Plc.

RCBM received a letter from the PSE last Friday notifying the company that the exchange’s board of directors cleared on April 13 its petition for voluntary delisting and ordered that the shares be delisted from the official registry effective April 25, subject to the payment of certain fees, the cement maker told the stock exchange on Monday.

RCBM had originally targeted to withdraw from the local bourse on March 15.

The company had expressed plans to delist its shares after its public ownership dropped below the 10% minimum requirement of the PSE.

Last September, AEV-CRH Holdings, Inc. -- a company jointly owned by AEV and CRH -- completed the acquisition of a 99.09% of RCBM, then known as Lafarge Republic, Inc.

CRH has partnered with AEV for the investment to comply with foreign ownership rules in the Philippines. The Irish company is also taking over some of Holcim Ltd. and Lafarge SA’s businesses in Europe, Canada, and Brazil as part of moves to secure antitrust regulatory approval for the merger.

AEV earlier obtained a facility from The Bank of Tokyo-Mitsubishi UFJ, Ltd. in the form of a bridge loan of up to $400 million, which will partially finance its foray into the cement business.

AEV previously said its venture into the cement business serves as “a solid opportunity” that will support the company’s thrust to provide a more diversified source of income for the conglomerate through infrastructure development. -- Krista A. M. Montealegre